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The cloud computing market size is forecast to increase by USD 404.7 billion at a CAGR of 15.19% between 2023 and 2028. The market is experiencing significant growth due to the increasing trend towards cost savings and enhanced data security through cloud adoption. Private cloud solutions are gaining popularity among both SMEs and large enterprises for their security advantages. Hardware companies are also investing in cloud infrastructure with solutions. Integration issues persist, however, as organizations grapple with the complexities of connecting various cloud services. Overall, the market is expected to continue its growth trajectory, driven by cost savings, security benefits, and the ongoing resolution of integration challenges.
The market is experiencing significant growth due to the increasing adoption of artificial intelligence (AI) and machine learning (ML) technologies in various industries. The integration of AI and ML in cloud infrastructure services is enabling real-time analytics of big data generated from IoT devices and digital transformation of industrial solutions. The emergence of 5G technologies is further accelerating the growth of the market by providing faster connectivity and enabling edge computing. The market is segmented into large enterprises and private deployment segments. Large enterprises are increasingly opting for public cloud services for handling massive amounts of data, including images and videos, in sectors like video-on-demand and industrial applications. On the other hand, private deployment is preferred by organizations dealing with sensitive data. Cloud infrastructure services are providing advanced solutions to meet the diverse needs of businesses. The future of cloud computing lies in the integration of AI, ML, big data, IoT, and 5G technologies to deliver efficient and cost-effective solutions.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.
The public cloud segment is estimated to witness significant growth during the forecast period. In the financial services sector, the usage of cloud computing has significantly grown in the last few years. By 2023, the public cloud segment is expected to lead The market due to the expansion of IT and financial services industries, particularly in developing economies like China, India, Brazil, Indonesia, and Mexico. The increasing number of small and medium enterprises (SMEs) in these countries necessitates solutions for business insights. Financial institutions share vast amounts of data and images, videos, and files in real-time, making IT infrastructure crucial for optimal uptime, security, connectivity, and data integrity. With the financial services industry's growing complexities, companies must leverage expert technical knowledge and hybrid cloud solutions to stay competitive. Payment gateways and connected devices further expand the cloud's reach, making it an indispensable part of the financial services landscape.
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The public cloud segment was valued at USD 143.80 billion in 2018 and showed a gradual increase during the forecast period.
North America is estimated to contribute 48% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
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In the dynamic landscape of technology, the market is experiencing significant expansion. By 2023, North America emerged as the leading regional contributor to this market growth, driven by the increasing adoption of cloud solutions among various industries such as government, IT, BFSI, retail, and others. The primary reasons for this trend include the cost-effectiveness, scalability, and minimal management requirements of cloud services.
Furthermore, the growing demand for software as a service (SaaS), Platform as a Service, and infrastructure as a service (IaaS) offerings is another significant factor fueling the market's expansion. Connected devices and the proliferation of images, videos, and files have necessitated the need for a strong cloud infrastructure. The expertise and technical knowledge of IT workers are increasingly crucial in implementing and managing these solutions. Hybrid cloud models are gaining popularity as organizations seek to balance the benefits of public and private clouds. Payment gateways and other financial applications are also moving to the cloud to ensure security and flexibility. Overall, the market is poised for continued growth, driven by the increasing interconnectedness of devices and the need for efficient data management.
Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The increased inclination toward cloud computing for cost-cutting is the key driver of the market. The market is witnessing significant growth globally as enterprises shift towards reducing their capital expenditures (CAPEX) by adopting cloud services for their computing needs. Small and medium-sized enterprises (SMEs) are particularly drawn to public cloud solutions due to their flexibility in scaling hardware and resources as needed. The high capital and operational expenses (CAPEX and OPEX) associated with setting up and maintaining traditional data centers make cloud storage services an attractive alternative for many organizations. Public cloud solutions are particularly beneficial for customers with temporary requirements for additional resources. However, for daily operational tasks, dedicated resources are necessary for smooth performance.
Furthermore, advancements in technologies such as AI and ML in the cloud are driving innovation and increasing the adoption of cloud computing. Big data analytics is another key area where cloud computing is making a significant impact. Edge computing and 5G technologies are also expected to complement cloud computing by enabling real-time data processing at the edge, reducing latency, and enhancing overall performance. Major cloud storage service providers are leading the market with their strong offerings.
The increased inclination for private cloud for enhanced data security is the upcoming trend in the market. The market has experienced significant growth due to the integration of advanced technologies such as artificial intelligence and machine learning with big data analytics. However, security and compliance concerns have remained a major hindrance to the widespread adoption of cloud computing, particularly in the form of public cloud services.
Moreover, regulations like the General Data Protection Regulation (GDPR) in Europe impose restrictions on data storage locations, adding to the challenges. Public cloud services, which are accessible via the Internet, have multiple customers utilizing shared resources. While these services offer security features, they are vulnerable to cyberattacks due to their public nature. Furthermore, edge computing and 5G technologies are emerging as potential solutions to address security concerns and improve performance.
The system integration issues is a key challenge affecting market growth. The market is witnessing significant growth as enterprises increasingly adopt IaaS, PaaS, and SaaS solutions to reduce IT infrastructure costs and eliminate the need for designing, purchasing, and maintaining their own IT systems. However, implementing cloud services at an enterprise scale poses challenges, particularly in ensuring seamless integration with existing infrastructure. One such challenge is connecting to monolithic systems, which are single-tiered applications that combine UI and data access code into a single program from a single platform. AI and machine learning (ML) are transforming cloud computing by enabling advanced analytics and automation. Big data is another key trend driving the market, as enterprises seek to harness the power of data to gain insights and make informed decisions.
Furthermore, edge computing and 5G technologies are also gaining traction, allowing data processing to occur closer to the source, reducing latency and improving performance. Major cloud storage providers offer scalable and reliable cloud storage solutions to cater to the growing data needs of enterprises. Despite these opportunities, system integration remains a significant challenge, particularly in connecting to monolithic systems. Enterprises must ensure that cloud services are compatible with their existing infrastructure and can be seamlessly integrated to avoid disruptions and maintain efficiency. Overall, the market is poised for continued growth, driven by the adoption of AI, ML, big data, and other emerging technologies. However, enterprises must carefully consider the challenges associated with system integration to ensure a successful transition to cloud services.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Adobe Inc.: The company offers Creative Cloud service with apps, web services, and resources
The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
Cloud computing has revolutionized the way businesses store, manage, and process data. The market for cloud computing continues to grow, driven by the increasing adoption of AI and ML in various industries, the proliferation of big data, and the integration of 5G technologies. Cloud storage services have become essential for storing documents, images, videos, and files. The rise of connected devices and the need for real-time analytics have further boosted the demand for cloud computing. The market is segmented into large enterprises and SMEs, with the large enterprises segment accounting for a larger share due to their greater technical knowledge and expertise.
Furthermore, hybrid cloud solutions are gaining popularity, allowing organizations to leverage both public and private deployment models. The public cloud services segment is expected to grow at a faster rate due to its flexibility and cost-effectiveness. Cloud computing is transforming various industries, including healthcare, industrial solutions, and IoT. The integration of AI and ML in cloud infrastructure services is enabling real-time analytics and generating significant ROI. The adoption of 5G technologies is expected to further accelerate the growth of the market. Cloud computing is not limited to IT workers anymore. It is becoming an integral part of digital transformation strategies for businesses across industries. Payment gateways and digital wallets are increasingly being deployed on cloud platforms to provide unified customer experiences. The future of cloud computing looks bright, with the emergence of new players.
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Market Scope |
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Report Coverage |
Details |
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Page number |
190 |
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Base year |
2023 |
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Historic period |
2018-2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 15.19% |
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Market growth 2024-2028 |
USD 404.7 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
12.86 |
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Regional analysis |
North America, APAC, Europe, South America, and Middle East and Africa |
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Performing market contribution |
North America at 48% |
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Key countries |
US, China, Canada, UK, and Germany |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Adobe Inc., Alibaba Group Holding Ltd., Alphabet Inc., Amazon.com Inc., Cisco Systems Inc., Citrix Systems Inc., Dell Technologies Inc., Hewlett Packard Enterprise Co., Huawei Technologies Co. Ltd., International Business Machines Corp., Microsoft Corp., NetApp Inc., Nutanix Inc., Oracle Corp., Rackspace Technology Inc., Red Hat Inc., Salesforce Inc., SAP SE, Tata Consultancy Services Ltd., and VMware Inc. |
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Market dynamics |
Parent market analysis, market growth inducers and obstacles, market forecast, fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, market condition analysis for the forecast period |
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Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Deployment
7 Market Segmentation by Service
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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